Forexpros Daily Analysis - 15/03/2011
ForexPros Daily Analysis March 15, 2011
Since mid-February on the EURGBP a clear uptrend has been forged, but might be at the end of his rise since yesterday when at the opening an important bullish target 0.8688 had been reached. For now, however, we are recording only the first warning signs, there is still no clear signals of market reversal. Early warning signs can be found in the negative divergence between the RSI (top down) and price developments that continue to create new highs and increasing further.
By analyzing the movement of the Bollinger bands we can see that prices have reached the upward target, unable to escape from the upper band, thus giving a signal that the continuation of the increase trend may come to a halt. We can set as a primary area of strength for the next few hours the levels between 0.8591 and 0.8603 that, even if achieved, it would not change the technical bullish background. If this area will give in to pressure from the bears, the target would be fixed at 0.8555. Conversely it would be a very positive excess of the maximum of yesterday with its denial of the negative divergence in creating today that could allow the euro to push up to 0.8746.
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Forex Trading analysis written by Marco Dall'Ava for Forexpros.
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